December 2023

Ref: 2200l-23

SBD Explores: NACS expansion and new standard

Why are automakers adopting NACS andwhat does the future look like for EVconnectors?
10-minute Insight
Tesla’s North American Charging Standard (NACS) is being
widely adopted by many automakers. This change offers
several advantages when it comes to expanding charging
services.
Recently, SAE has also published their standard for the NACS
connector (SAE J3400), giving automakers clarity andconfidence in interoperability.
In this edition of SBD Explores, we dive into why NACS isbeing adopted and what the future of EV connectors will looklike.

Target audience
StrategyEngineering

Focus market(s)GlobalMarketing/ Product Planning1

What is happening?
Key takeaway
Nov. 2022

May 2023

June 2023

July 2023

Aug. 2023

Sept. 2023

Oct. 2023

Nov. 2023

Dec. 2023

OEMs announce NACS adoption in future

Tesla released the specifications anddesigns for their proprietary connector
and adopted the moniker: North American
Charging Standard (NACS). At the sametime, they also began to discuss opening
their Supercharger network to otherautomakers. This led to many companies
considering a switch to the NACS
connector.
• While automakers considered a switch to
the NACS connector, the lack of a rigorous
3rd party standard raised concerns about
interoperability and performance.

Tesla releases North
American Charging
Standard (NACS)
specifications• With this, SAE stepped in and announced inJune they will create a standard for NACS
by the end of 2023, boosting confidence inthe connector and spurring a wave ofadoption.
ChargePoint offers NACS
equipped chargers

SAE announces working
on standard for NACS

SAE announces
standard for NACS

May 2023
Nov. 2022• In December, SAE released their standard
for NACS under SAE J3400.

Sept. 2023
June 2023

July 2023• In October 2023, ChargePoint releases
chargers with NACS connectors. This
comes after an announcement of intent todo so a couple months prior.

Aug. 2023

Timeline:

Developments in NACS release and adoption

Oct. 2023

Nov. 2023

Dec. 2023

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Why does it matter?
Key takeaway

Density charts show where relevant charging connectors
are available within the United States

Tesla has the largest charging structure inthe world. Implementing capability with
their systems provides OEMs with keyadvantages.
• Implementing the NACS will allow OEMs tonearly double the amount of charge points
owners have access to. This can be key insupporting the user journey and reducing
range anxiety.

CCS Type 1 / J1772

Tesla NACS

• The Tesla charging network is one of themost reliable networks in the world.
Availability and live status is accurate whichhelps when owners are selecting which
stations to go to. This is very important in
the US where many non-Tesla charging
stations often face issues with reliability.
• The adoption also has key implications oncharge providers. Charge providers will
have to strategically decide how to swap
over to NACS while not alienating existingcustomers that use non-NACS connectors(CCS, J1772, CHAdeMO).
• OEMs will need to decide how they
approach supporting EV buyers before theswitch is made. Adaptors will have to be
shipped with vehicle purchase that allow
for NACS to CCS/J1772 connections.

CHAdeMO• The shift to NACS will not impact cybersecurity for connectors as they use thesame standard as CCS.
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Where next?
Key takeaway

1OEMs announce
adoption ofNACSChargeProvider
adoption ofNACS

2FutureOutlookOEMs
releaseNACS
vehicles3NACS
becomesdominate

4Now

1-2 yrs.

3 yrs.+We have already seen many OEMsannounce their adoption of the NACS. It is
likely more will follow with the recent
announcement of the SAE standard.

Charge providers will have to expand or
swap their connectors to support NACS
else they look to lose customers to Tesla.

OEMs have announced they will releasevehicles with the NACS in 2024 and 2025.
This is supported with the recent SAE
standard which solves many concerns
OEMs had when implementing thetechnology.
NACS / SAE J3400 will be present on all
passenger vehicles in North America. AllOEMs will ship vehicles with this connector
and all charge points will support it.

Most OEMs have announced they will
release vehicles with NACS connectors as
early as 2024 and 2025. Some key events
will occur alongside the release of morevehicles with NACS.
• Charge point operators will need to offer
NACS connectors as well. Charge points
with CHAdeMO connectors are in the best
position to be replaced with NACS sinceCHAdeMO is no longer offered in newvehicles. Offering both NACS andCCS/J1772 will ensure compatibility for amajority of the market.
• OEMs will have to consider the customer
experience for those adopting EVs in themiddle of this transition. Consumers
may expect OEMs to provide an adapter toenable compatibility with both CCS andNACS.
• Legislation may eventually mandate theuse of the NACS connector.
• Eventually, automakers will not be
expected to provide adapters and drivers
may need to purchase these either fromthe automaker or a third party. This issimilar to when Apple removed the 3.5 mmheadphone jack and offered a lightning port
adaptor for limited time.

4What to watch out for?
Key takeaway

Markets of interest

Technology of interest
Data requirements from Tesla

Outdated connector typeLarge Tesla market share
800V vehicle architecture

The EV ecosystem is complex with several
factors that should be monitored in thecoming years.
• 800V vehicle architectures are on the riseand system voltages may continue toincrease in the future. NACS is capable ofsupporting up to 1000V, yet futurearchitectures (especially in commercialvehicles) may necessitate other connectors
such as the Megawatt Charging System(MCS).
• In order for OEMs to enable seamlesscharging at Supercharger stations, theyneed to have an agreement with Tesla. The
details of each agreement are unknown asof now but could include the transmissionof vehicle, user, and charging session data.
• Japan could be a key market for NACS
adoption as their charging infrastructure is
still quite limited and relies on
the CHAdeMO connector, which has lostmuch of its market share globally.

• Australia, with its large Tesla market shareand expanding charging infrastructure,
could be another market to watch.
However, unlike the USA, Australia favors a3-phase power network to the property,
which limits the usefulness of the singlephase NACS connector.
5How should you react?

1
2
3

EvaluateAuthors

If not done so already, evaluate
how adopting the NACS can benefit
your company.

DesignIncorporate the NACS design into
your systems. Ensure you future
proof the system to support future
EV charging specifications (i.e.
800V)

Advertise
Let customers know of the swap
and what benefits they get from thenew technology in their vehicle.

Michael GrafRobert FisherResearch Analyst

Domain Principal

Related SBD Reports
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EV Charging &Infrastructure
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Ref: 218
EVLegislation &Incentives
Guide

Related SBD Consultancy▪ EV range evaluation▪ EV battery technology forecast▪ Charging station UX▪ EV forecast and penetration

Interested in finding out more?
Most of our work is helping clients go deeper into new challenges andopportunities through custom projects. If you would like to discuss recent
projects that we’ve completed relating to EV architecture or EV
charging, please contact us.
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